{"id":894715,"date":"2018-08-09T10:41:20","date_gmt":"2018-08-09T16:41:20","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=894715"},"modified":"2018-08-09T10:41:20","modified_gmt":"2018-08-09T16:41:20","slug":"supreme-court-minnesota-holds-ventilator-motor-incorporated-homes-hvac-system-qualifies-machinery-excepted-states-ten-year-statute-repose","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/supreme-court-minnesota-holds-ventilator-motor-incorporated-homes-hvac-system-qualifies-machinery-excepted-states-ten-year-statute-repose\/","title":{"rendered":"Supreme Court of Minnesota Holds Ventilator Motor Incorporated Into a Home\u2019s HVAC System Qualifies as \u201cMachinery\u201d Excepted From the State\u2019s Ten-Year Statute of Repose"},"content":{"rendered":"<p>John J. Gazzola | <a href=\"https:\/\/www.lexology.com\/library\/detail.aspx?g=1fd94fdb-4e5c-48c9-96f5-802d506dc087\" target=\"_blank\" rel=\"noopener\">Pepper Hamilton LLP<\/a> | July 26, 2018<\/p>\n<p><strong><em>Great N. Ins. Co. v. Honeywell Int\u2019l, Inc., No. A16-0997, 2018 Minn. LEXIS 236 (May 9, 2018)<\/em><\/strong><\/p>\n<p>This case arises out of a residential construction project and the installation of ventilators into a home\u2019s HVAC system. Sixteen years after completion of the work, a fire occurred in one of the ventilators, causing property damage. After paying the homeowners\u2019 insurance claim, Great Northern Insurance (\u201cGreat Northern\u201d), as subrogee, filed suit against McMillan Electric Company (\u201cMcMillan\u201d), the manufacturer of the motors in the ventilators, asserting claims for product liability, breach of warranty, and negligence, including a claim for breach of a post-sale duty to warn consumers of the risk of fires in ventilator motors.<\/p>\n<p>The trial court granted McMillan summary judgment concluding that Minnesota\u2019s 10-year statute of repose barred all of Great Northern\u2019s claims except for the post-sale duty to warn claim, which also failed because McMillan owed no such duty. The Court of Appeals reversed both holdings. On appeal, the Supreme Court affirmed the Court of Appeals\u2019 decision that McMillan\u2019s motor was \u201cmachinery,\u201d to which the statute of repose does not apply.<\/p>\n<p>In reaching this conclusion, the Supreme Court explained the purpose of Minnesota\u2019s statute of repose and the types of claims to which it applies. According to the Court, the statute is intended to avoid litigation of stale claims by barring actions relating to the defective construction of improvements to real property that accrue more than 10 years after a construction project achieves substantial completion. However, as an exception to this bar, the statute provides that \u201c[t]he limitations prescribed in this section do not apply to the manufacturer or supplier of any equipment or machinery installed upon real property.\u201d Minn. Stat. \u00a7 541.051, subd. 1(e). Here, the parties stipulated that the ventilators incorporated into a home\u2019s HVAC system constitute an improvement to real property. Therefore, the Court reasoned that the statue of repose barred Great Northern\u2019s claims unless McMillan\u2019s motor constituted \u201cequipment or machinery installed upon real property.\u201d<\/p>\n<p>In arguing that the statute of repose applied, McMillan argued that the ventilator (and its motor) was akin to \u201cordinary building materials\u201d rather than \u201cequipment or machinery\u201d because it was part of a home\u2019s systems and structure. According to McMillan, the machinery exception should apply only where the machinery assists \u201cin some operation, activity or particular use of the building[.]\u201d The Court rejected this argument, however, concluding that the statute\u2019s plain language requires consideration of the material\u2019s nature and function, rather than its integration into a structure.<\/p>\n<p>Ultimately, the Court held that the motor fell within the machinery exception to the statute of repose. The Court reasoned that the ventilator containing McMillan\u2019s motor constituted \u201cmachinery\u201d because it consisted of a motor, fans, air filters and a heat-exchange core that modified and transmitted mechanical energy to efficiently regulate a home\u2019s climate. The motor therefore was excepted from the time bar in Minnesota\u2019s statute of repose and Great Northern\u2019s claims for breach of warranty, negligence, and product liability could proceed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>John J. Gazzola | Pepper Hamilton LLP | July 26, 2018 Great N. Ins. Co. v. Honeywell Int\u2019l, Inc., No. A16-0997, 2018 Minn. LEXIS 236 (May 9, 2018) This case arises out of a residential construction project and the installation of ventilators into a home\u2019s HVAC system. Sixteen years after completion of the work, a&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/supreme-court-minnesota-holds-ventilator-motor-incorporated-homes-hvac-system-qualifies-machinery-excepted-states-ten-year-statute-repose\/\">Continue reading <span class=\"screen-reader-text\">Supreme Court of Minnesota Holds Ventilator Motor Incorporated Into a Home\u2019s HVAC System Qualifies as \u201cMachinery\u201d Excepted From the State\u2019s Ten-Year Statute of Repose<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172,15],"tags":[9895,10557,542,15,268],"class_list":["post-894715","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","category-product-liability","tag-advise-consult","tag-hvac","tag-minnesota","tag-product-liability","tag-statute-of-repose","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supreme Court of Minnesota Holds Ventilator Motor Incorporated Into a Home\u2019s HVAC System Qualifies as \u201cMachinery\u201d Excepted From the State\u2019s Ten-Year Statute of Repose - Advise &amp; 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